DPG, Inc. makes electric wires. In 2020, the cost of producing a foot of wire was Rs. 3.00, and the selling price was Rs. 3.90 per foot. In 2021, production costs increased to Rs. 4.00 per foot, although the selling price remained at Rs. 3.90. The increase in the cost was obvious. Material and labor had remained fairly constant per foot of wire, but overheads costs, which were Rs. 1.50 per foot in 2020, had increased to Rs. 2.50 in 2021. The problem was that most overhead costs were fixed, but output had decreased on account of multiple market driven factors. Vinita Mehta, the CFO of DPG, reviewed the data generated by the company's process costing system. In 2020, overhead costs in all of the company's departments were Rs.15,00,000, and wire manufactured was 10,00,000 feet. In 2021, overhead costs were still approximately 15,00,000, but wire production decreased to 6,00,000 feet. At a recent meeting of the senior management team, Vinita noted: "the problem is that we are not making use of capacity. We could easily produce 15,00,000 feet of wire given our state of art equipment, but we are operating at less than 50% of capacity." Vinita estimates that to sell 15,00,000 feet of wire in the current market, the company would have to lower its price to Rs. 3.50 per foot, which is even lower than its current cost per foot of Rs. 4.00. Would decreasing the price be a good decision? Please show appropriate calculations.